Income Taxes

Taxes are on everyone minds these day as we countdown to the final date for filing our 2009 Income Taxes.

Did you know in the early days the United States had few taxes. Between 1791 and 1802, the country received taxes on distilled spirits, carriages, refined sugars, tobacco, snuff, properties sold at auction, corporate bonds and slaves. These taxes were known as “internal” taxes.

The War of 1812 was so expensive that a “sales” tax was created on jewelry, gold, silverware and watches. By 1817 Congress decided to stop the “internal” tax because they were receiving taxes on goods imported. These taxes were sufficient to run the country.

To support the Civil War, Congress instituted the first income tax law. This was the start of what we know so well today. The income tax was a graduated system. An individual making between $6,000 and $10,000 was taxed at a rate of 3%. Individuals making over $10,000 were taxes at a higher rate. Later Congress established “sales” tax and “inheritance” tax.

Every few years changes are made and imposed on the public. I think this will continue throughout ages.

NOW, is the time to file your 2009 income taxes if you have not already completed this task. Don’t miss the deadline or you will also be required to pay interest and penalties.